Worlds Inc (WDDD)

[PatentParsing]

Worlds' P/E ratio

Worlds can generate earnings by selling their MRMD shares and by receiving rewards from IP litigation. I agree with you that since these earnings are one-time events, a P/E ratio of 1 is appropriate, assuming Worlds just sits on their earnings, without using them for additional opportunities.

But Worlds can also generate earnings by pursuing new opportunities, such as product development and acquisitions. If, for example, they use some of their MRMD earnings to pursue such opportunities, then a P/E above 1 would be deserved. Even though MRMD has its own P/E ratio, any earnings Worlds puts to use deserve a P/E ratio above 1.

Since we don't know how, or if, Worlds plans to put their earnings to use, I have decided to lower my P/E ratio assumption from 2 to 1.5. Keep in mind, the computer and technology sector has an average P/E ratio of 21. If their earnings begin to be put to use in a high growth area, their P/E ratio will need to raised to reflect that potential.

You can see the latest adjusted book and fair values at: Worlds' Valuation.